In any startup, (and particularly an Internet startup where the barriers to entry are few), it is important that you have a basic understanding of trademarks for two reasons:
- In companies where a potential competitor's barriers to entry are minimal, the value of a strong "brand" becomes significantly higher. Consider CraigsList: Here's a great company providing a service that is a serious threat to the classifieds section of every major newspaper in the U.S.. To duplicate such a service would not be technically difficult (See e.g. Backpage); however, CraigsList has created a "brand" that is extremely difficult to topple. They have protected that "brand" by applying for trademarks.
- When you are first starting a company, even if you do not file for a trademark, it is essential that you at least confirm that your "brand" is not violating any trademarks already filed. The costs-benefits are such that not completing this initial check is foolish. Remember to check at both the state and national level (USPTO).
For a great primer on trademarks check out Harvard Law School's overview of U.S. Trademark Law.
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